Europe's luxury brands could get a boost thanks to measures introduced by the European Central Bank (ECB) last week, analysts told CNBC.
A strong euro has been a headwind for major European luxury houses including LVMH and Gucci parent company Kering, which has complained about the negative currency effects on earnings.
But since ECB President Mario Draghi announced last week a cut in the central bank's benchmark interest rate and plans to launch a bond-buying program, the euro has moved lower – making the euro zone's products more attractive to other countries.
Analysts said the move in the single currency would be a tailwind for a luxury goods companies' earning and stocks.
"LVMH in the spring had a tough earnings report and that came from the very strong euro. We think this is totally going to change now following what Draghi did last week," Patrick Armstrong, CIO of Plurimi Investment Managers.
"We think the weak euro is going to be in play for the rest of this year and next year and that's really going to be a tailwind for these companies."